Deutsche Lufthansa Stock: Shares Fall Amid Airport Strikes

Deutsche Lufthansa's stock experienced significant losses on Monday, dropping 2.9% to €7.76 in XETRA trading, with the price briefly touching a daily low of €7.68. The decline comes as labor strikes paralyzed operations at 13 German airports, forcing the cancellation of at least 3,500 flights nationwide and affecting approximately 560,000 passengers. Frankfurt Airport alone saw 1,070 departures and arrivals canceled after the Verdi union called ground staff to strike, escalating pressure in ongoing wage negotiations. The union is demanding an 8% increase in two separate labor disputes involving public service and aviation security personnel. The airline industry has criticized Verdi for what it considers misuse of strike rights, calling for legislation requiring mandatory arbitration before work stoppages affecting critical infrastructure. Despite these operational challenges, Lufthansa's stock remains 31.31% above its 52-week low of €5.38 recorded in August 2024.

Financial Performance Remains Promising

Notwithstanding the short-term disruptions, Lufthansa has demonstrated positive financial momentum. The airline reported earnings per share of €0.46 in the fourth quarter of 2024, a substantial improvement from €0.06 in the same period the previous year. Revenue also grew by 7.8% to €9.44 billion. Analysts project earnings of €1.10 per share for fiscal year 2025, with first-quarter results expected on April 29. The company is working to normalize operations quickly, adjusting aircraft positioning and staff schedules to ensure a smooth restart of flight services on Tuesday.